gerhard bosch
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Gerhard Bosch. « Dismissing hours not workers – work-sharing in the economic crisis to avoid dismissals - European experiences ». Workshop: Global economic crisis, innovative labour policies and the role of labour administration Prague, 2 March 2010. Prof. Dr. Gerhard Bosch - PowerPoint PPT PresentationTRANSCRIPT
Gerhard Bosch
« Dismissing hours not workers – work-sharing in the economic crisis to avoid dismissals - European experiences »
Workshop: Global economic crisis, innovative labour policiesand the role of labour administration
Prague, 2 March 2010
Prof. Dr. Gerhard BoschInstitut Arbeit und QualifikationForsthausweg 2, LE, 47057 DuisburgTel.: +49 203 / 379 1827; Fax: +49 203 / 379 1809, Email: [email protected] ; http://www.iaq.uni-due.de/
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Structure of Presentation
1. Work-sharing in the crisis2. Development of GDP and unemployment in
different OECD countries3. Use of work-sharing in the crisis in Europe 4. Use of working time reductions in France and
Germany5. The new agreement in the German
manufacturing industry 20106. Conclusions
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1.1 Work-sharing in the crisis
• Temporary work-sharing – reversible• Main goal: retain workers• Different forms of work-sharing
– Subsized – unsubsidized– With or without wage compensation– Short-term – long-term– Negotiated – non negotiated– Voluntary – involuntary– Reduction of standard working hours vs reduction
of overtime hours• Different goals: Avoid - reduce or postpone
dismissals
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1.2 Work-sharing in the crisis
• Different reactions of companies to declines in orders– reduce (1) number of employees, (2) of hours
of employees, (3) of hourly productivity• Is work-sharing = labour hoarding?
– Labour hoarding = the ‘retention by a business of more workers than are required to produce the present level of output’ Oxford Dict. of Economics)
• Working-time reductions in crisis may be a form of “underemployment” if volume of work adjusted to the lower level of ouptput
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2.1 Evolution gross domestic product in constant prices 2008 – 2009
Source: Reuters-EcoWin: OECD; GDP Data national Statistical Offices; Calculation of IMK Düsseldorf
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n2.2 Harmonized unemployment 2008 – 2009 (2008 March = 100)
Source: Reuters-EcoWin: OECD; GDP Data national Statistical Offices; Calculations of IMK Düsseldorf
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n2.3 Total employment and socially insured employees in Germany
Source: Bundesagentur für Arbeit (2009), der Arbeits- und Ausbildungsmarkt in Deutschland, October 2009
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3.1 Use of work-sharing in Europe: The StateShort-time/chomage partiel- Adaption of existing programmes: DE, FR, BE, NE, AT,
SU, IT, LU, FI- Longer duration, inclusion of new groups, easier
access, higher subsidies
- New: BG, HU, PL, RO, SL- Shorter duration, higher replacement rates
Active labour market policy:- DK, SW, NO
Reliance on the Market- UK, IRE, ES, ...
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3.2 Work-sharing in the economic crisis: Firms and social partners
Firms- Across Europe examples of work-sharing in
companies – unpaid and subsidized by companies
- Mainly big companies with highly skilled work-force
- But also use of flexible wt-systemsSocial Partners- Agreements on paid and unpaid temporary work-
sharing - DE Top up of short-time subsidies- SW Engeeneering industry: Temporary unpaid
WT-Reductions
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3.3 Collective agreements on possible temporary working-time reduction in different industries DE
Industry Standard working time Working-time reductions
In hours To ... hoursBanking 39 31Printing industry 35 30Iron and steel industry 35 28Wood and plastics Westphalia/Saxony 35/38 32/30Motor trade and repairs Lower Saxony 36 30Metalworking industry Baden-Württemberg/Saxony 35/38 30/33
2010 26Local government East 40 80-75% of standard working
time
Paper processing 35/37 30/32Travel agencies 38.5 30Textile cleaning services 38.5/40 33.5/35Insurance 38 30
by…. per cent
Clothing West 37 6.75Textile industry Westphalia/East 37/40 6.75
possibleGerman old-age insurance 39 xEnergy NRW (GWE)/Used(AVEU) 38 xConfectionery industry West/Used 38/39 xTransport industry NRW 39 x
Source: WSI-Tarifarchiv as at April 2009
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n 3.5 Conditions supporting work-sharing in the crisis with high impact on LM
• High employment protection – supports internal flexibility
• High share of skilled workers• Flexible working hours with time
accounts• Strong social partners – negotiating
industry wide agreements• Support through public short-time
schemes
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n4.1 Use of work-sharing France and Germany
• Both countries improved conditions for short-time/chomage partiel
• DE (since 1924): 2008/9– Prolongation to 24 months (since 2010 18 months)– Cost-reduction: no social contributions after 6 months– Easier take up
• FR (since 1968): 2008/9– Prolongation from 600 to 800 hrs (some industries
1000hrs) per year– Maximum 6 instead of 4 consecutive weeks– Minimum compensation increased from 4,42€ to 6.84 €
per hour
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4.2 Short-time workers in Germany in 1000s 2005 – 2010
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n 4.3 Components of GDP Development 2000 – 2010 - yearly averages -
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010
Source: Destatis, BA, calculation of IAB
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n 4.5 Number of persons in short time France 1990-2008
Source: INSEE; taken from Liégy 2009: 3
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4.6 Why there is higher internal flexibility in Germany than in France (I)
Possible Explanations
- traditional use of short-time work as a mean of retention (D) not preparation of dismissal (F)
- More working time flexibilisation in German companies
- Higher volumes of credit hours and overtime before crisis in DE because of export boom
- Different business models - Business model based on skilled workers (D)/ high
investments in vocational training/ low investments in F- More specialization in diversified quality production in D
than in F
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4.7 Why there is higher internal flexibility in Germany than in France (II)
Possible Explanations - Higher internal pressure from unions/works councillors
strong rights of codetermination in D/ less rights in F
- German state uses short-time work as instrument of industrial policy/ France direct support of national champions
- Federal elections in Germany/elections in North-Rhine-Westphalia 2010: cannot be won with neoliberal programm
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n 5 New agreement on job security in the German engineering industry 2010
-after 12 months short-time transition in a cheaper short-time scheme: min. 6 months - yearly bonus (10,6% of yearly income) divided by 12 and added to monthly income – increase of monthly wage = increase of short-time allowance - agreement with works council - no dismissals
- after 6 months in new short-time – transition into temporary working-time reduction down to 26 hours per week - agreement with works council - no dismissals - partial wage compensation for hours (26-200% - 31-50%)
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6.1 Conclusions • Pros of work-sharing in the crisis
– Immediate impact on the labour market and on costs for companies
– Bridging until fiscal packages take effects– Fine-tuning – targeting companies in trouble– Avoid dismissal and re-recruiting costs– Avoid skill shortages– Avoid scar effects of unemployment– Create ellbowroom for recruting young workers– Improve social cohesion by distributing costs more evenly
• Cons of work-sharing– Obstacle to necessary structural change– High costs
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6.2 Conclusions
• Pros prevail by far, since there are no bottlenecks in the labour market for growing companies
• OECD: – Limitations of „work-first“ approach in the crisis“– Expansion of „train-first“ approach
• Also advantages in a „retain-first“ approach• The best a mixture of „train-first“ and retain-
first“ approach – since not much training during short-time